Libbey announces organisational realignment

An organisational realignment plan has been initiated by international glass tableware specialist Libbey Inc that is expected to reduce annual pre-tax run-rate costs by approximately $9-$11 million. The plan focuses on transformational actions and structural changes to lower the company's cost base, improve its financial performance and cash flow generation and create a simplified organisation best positioned to deliver against its key financial and operational priorities.

The plan includes the following actions:

  • Transition to a global, functionally aligned organisation to better leverage expertise and scale.
  • Centralise manufacturing operations and supply chain management to optimise and leverage capabilities and capacity across the global network.
  • Integrate key e-commerce functions into the core business, resulting in a more efficient omni-channel commercial operating structure, as well as the creation of a new global marketing organisation to drive efficiencies and better leverage digital marketing capabilities across leading food service distribution and retail customers.
  • Reduce the number of layers and broaden managers' spans of control to simplify decision making and improve agility and responsiveness.
  • Leverage the company’s extensive sales and channel expertise to drive synergies and growth across Libbey's USA/Canada and Latin America regions.

Libbey’s Board has approved the appointment of James C Burmeister to the additional role of Senior Vice President, Chief Operating Officer from 1 October 2019. While the company conducts a search for a Chief Financial Officer, Mr Burmeister will continue in his current role as Senior Vice President, Chief Financial Officer. In his expanded role, Mr Burmeister will have primary responsibility for the company's manufacturing, engineering and supply chain operations, in addition to his continuing responsibilities for the company's accounting, finance and information technology functions and will provide focused leadership to leverage and optimise Libbey’s global supply chain.

Published: 
29/08/2019

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